Goa's economic growth to be hit by mining halt: Parrikar

Panaji: Goa's economic growth will be impacted by the halt in mining activity, although the state has seen 3 percent growth in revenue collection, Chief Minister Manohar Parrikar has said.

He pegged the negative impact on GDP to the tune of Rs 4,000 crore, which would be offset up to Rs 3,000 crore by implementation of various measures.

Goa CM Manohar Parrikar. AFP

The state, which showed expansion of 8.3 percent in 2011-12, is projected to grow at 12 percent this fiscal.

Although the government has 'done enough' to cushion the impact, the halt in the activity is being reflected in tax collection from the mining belt, he said.

"The tax collection in the markets like Sanvordem and Bicholim (mining belt) has decreased by 30 percent. Also the sale of vehicles has gone down in these markets," Parrikar said at a press meet last evening.

The collection in the tax on vehicles has decreased by 10 percent, he added.

Attributing the dip in tax collection to the mining activity which is stunted for now, he said prudent economic measures being adopted by his government have negated the impact to some extent.

"Although there is impact on mining, the revenue growth for this month is 3 percent," he said, adding, "if one does not consider the impact of mining, the total growth is 7 percent."

Parrikar said agriculture has been reviving in the mining belt, where farmers had given up their traditional occupation due to increasing dust pollution and slush being washed into their fields.

"There is 30 percent additional demand in seeds for the agriculture purpose in the mining belt," he said.

Mining operations in all the 90 mines in Goa were halted by the Supreme Court on the basis of the Justice M B Shah Commission report which estimated a whopping Rs 35,000 crore loss to the exchequer due to illegal mining in the last 12 years.

Mining companies have also been restrained from exporting and selling ores, which has already been extracted, pending the report from the Centrally Empowered Committee (CEC).